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Today's Paper | April 24, 2026

Published 23 Apr, 2026 07:58am

ARL shuts main crude plant amid road closures

ISLAMABAD: In a major setback, Attock Refinery Limited (ARL) — the only oil refinery in the north of the country — has been forced to shut down until restoration of ongoing road closures taken under security measures ahead of the possible US-Iran talks.

The refinery is the only such facility catering to the fuel requirements of almost all of central and northern Punjab, as well as Khyber Pakhtunkhwa, Azad Jammu and Kashmir and Gilgit-Baltistan.

In a mandatory regulatory filing to the Pakistan Stock Exchange and Securities and Exchange Commission of Pakistan, ARL reported that its main crude distillation plant with 32,0000 barrels of daily refining capacity has been shut down.

The company said it could not send out refined products or receive crude oil coming from oil fields.

“We wish to inform you that due to the expected arrival of foreign delegates in Islamabad, there has been an abrupt suspension of oil tank lorry movement to and from ARL. This situation has adversely impacted crude oil receipts as well as product dispatches, directly affecting refinery operations,” ARL wrote.

It further added that due to constraints in product dispatch, ARL’s stocks of petrol and high-speed diesel have increased significantly.

“Concurrently, our crude oil receipts have also declined significantly due to the road closures. As a result, we have shut down our main crude distillation unit (HBU-I) of 32,400 barrels per stream day (BPSD) capacity till improvement of the current traffic restrictions,” the refinery’s management said in its mandatory regulatory reporting.

In separate letters, it drew attention to the closure of roads for the movement of oil tank lorries from April 18 to April 26 due to the expected arrival of foreign delegates in Islamabad.

According to informed sources, as a result, most of the oil production in Punjab’s Jhelum and Attock regions, as well as nearly all fields in KP, would have to be shut down and may face structural challenges.

The first crude cargo from the latest and largest ever OGDC’s Baragzai well was also stopped on way to ARL. Later, an official said Petroleum Minister Ali Pervaiz Malik had taken up the matter with the relevant quarters and made arrangements for the police escort to be provided to trucks coming to and from ARL starting 11pm and hopefully things would work out and the refinery would be operational at the earliest.

Over the last week, ARL had been requesting the Petroleum Division and the Oil & Gas Regulatory Authority to facilitate the movement of oil lorries to and from its refinery, but was unable to secure the right of way.

It elaborated that ARL is the only refinery located in the northern region of the country. It receives crude oil from local oil fields in KP and the Potohar region and plays a critical role in meeting the petroleum requirements of this region and beyond. This includes the supply of aviation fuel to Islamabad and Peshawar airports, as well as fuel support to the armed forces.

ARL also provides furnace oil to independent power producers to help mitigate power shortages in the country.

Published in Dawn, April 23rd, 2026

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